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Are Investors Undervaluing AMark Precious Metals (AMRK) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is AMark Precious Metals (AMRK - Free Report) . AMRK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 3.81 right now. For comparison, its industry sports an average P/E of 6.97. Over the last 12 months, AMRK's Forward P/E has been as high as 12.41 and as low as 3.72, with a median of 7.59.

Another notable valuation metric for AMRK is its P/B ratio of 1.51. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.59. AMRK's P/B has been as high as 2.33 and as low as 1.13, with a median of 1.66, over the past year.

Finally, we should also recognize that AMRK has a P/CF ratio of 4.57. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.88. Over the past 52 weeks, AMRK's P/CF has been as high as 5.96 and as low as 3.20, with a median of 4.26.

These are just a handful of the figures considered in AMark Precious Metals's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMRK is an impressive value stock right now.


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